reserve
Before the Dutch lost the reserve currency status to the French, the royals teamed up (read inter-married) with the English crown.   Who then took it over from the French, when they, in turn, failed as well.  The English, with full support of the Dutch, built an empire never to be matched again, in the open for the public to see.
The bankers had no choice when it collapsed.  The USA was the only country that still had a gold and silver specie-money, that was a Western-based country.
Conclusion: U.S. Inherits it Last, Before it Ends.
However, Nothing lasts forever…
It’s all about Russia.
Some of the more recent issues have dealt with the crashing Ruble and how this is happening.
Fund Manager Dave Kranzler makes the case that it is a function of the currency wars instituted by the US government.  Why wouldn’t the Federal Reserve point their barrels at Russia’s economy and use the dollar to create some much needed distractions from the $1 TRILLION increase the US deficit?
As desperate as the Western world appears to be, with the dying-dollar at their feet, they need another war and they need it NOW.
Demonize Russia, and more specifically Putin, create a situation that may cause the citizens of Russia to turn on their leader and start dropping bombs.
A hungry and angry citizenry makes for nightmare scenario, of the ruling class, in any country.

Do you want to know if the stock market is going to crash next year?  Just keep an eye on junk bonds. 
Prior to the horrific collapse of stocks in 2008, high yield debt collapsed first.
And as you will see below, high yield debt is starting to crash again. 

gold repatriation

Yesterday we received news that the FRBNY withdrew 47 tonnes of gold, of which 3 tonnes went to Holland and the remainder, most likely, was Germany. We will probably have a statement officially from Germany on that matter.
If true, it would certainly kibosh the Bloomberg story earlier in the year as totally false. (that Germany does not want to repatriate the gold stored at the FRBNY)

No doubt we are now seeing central banks no longer trust each other as confidence falters.  As Bill Holter constantly reminds us, this is the biggest run on the banking system, the repatriation of one’s gold.
Germany is going to have a tough time explaining why Holland received its 122.5 tonnes before Germany got hers with a further question as to why it is taking longer to repatriate Germany’s gold with the added fact that Holland got their gold in less than one year.

dollar

China and Russia have effectively switched to domestic currencies in trading using financial tools as swaps and forwards, as they seek to reduce the influence of the US dollar and foreign exchange risks.
The agreement signed in the end of October comes into force Monday, December 29, and provides a currency swap of CNY 150 billion (up to US$25 billion).

Should the federal government be spending billions of dollars to pump up Wal-Mart’s profits?   The question sounds bizarre, but unfortunately this is essentially what is happening.  Because Wal-Mart does not pay them enough money, hundreds of thousands of Wal-Mart employees enroll in Medicaid, food stamps and other social welfare programs.
Even though Wal-Mart makes enormous profits, they refuse to properly take care of their employees so the federal government has to do it.  And of course this is not just a Wal-Mart problem.  There are hundreds of other major corporations doing exactly the same thing.  And they will keep on doing it as long as they can because relying on the federal government to take care of their employees allows them to make much larger profits.  This gives these companies an enormous competitive advantage and it distorts the marketplace.  If you love the free enterprise system, you should be aghast at this.  Our big corporations have become the biggest “welfare queens” of all, and Wal-Mart is near the top of that list.

gold morgan oil

As the year 2014 ends and 2015 begins, gold is postured quite bullishly, from both a fundamental and technical standpoint.
China officially imported almost 100 tons of gold in November, and Hong Kong imported about 50 tons.
India also officially imported about 150 tons in November. Clearly, Chindian demand is once again robust, and growing!
The “shock and awe” growth of the Indian and Chinese economies is relentless.   That means the growing dominance of the love trade on the global gold price discovery stage, is probably best described as a “clock that can’t be turned back”.
Gold mining companies are entering 2015 with robust demand from China and India, and with a very stable outlook for fuel costs.
This situation should entice substantial numbers of value-oriented fund managers into the sector, throughout the year!

Albert Einstein Citizen Second passport lessons from Steve Wozniak and Albert EinsteinIn January 1933 Albert Einstein was visiting the US under a research grant from Princeton University.
Meanwhile back home in Germany Adolf Hitler had just become elected chancellor and started creating an atmosphere hostile for Jews, intellectuals and pacifists, of which Einstein was three times guilty.
Recognizing the danger of continuing to hold a German passport, Einstein traveled to Belgium where he renounced his German citizenship.
By that time the Nazis had raided his cottage, confiscated his property and seized his bank accounts.
If this same scenario played out today, it’s likely Einstein would have looked for a different country to call home.

Buy Silver American Eagles at SD Bullion

Amazingly, retail investors purchased 84 Silver Eagles in 2014 for every ounce of Gold Eagles.
It will be interesting to see how 2015 unfolds.
With all the geopolitical, financial and economic uncertainty… next year just may be GANG BUSTERS for the U.S. Mint.

Gold Bundesbank

The big news today came from the FRBNY where we witness $64 million dollars worth of gold leave the bank (and New York shores) to repatriate the last amount owed to Holland and most likely Germany has resumed her repatriation.
This gold is valued at $42.20 per oz and thus 1.516587 million oz (47.17 tonnes) leaves the bank.
We know that Holland was to receive its last 3 tonnes in November (they have thus repatriated 122.5 tonnes from the beginning of 2014).  Since Germany is the only country that officially has asked for her gold back, you can safely assume that Germany has received 44 tonnes of her 1500 tonne hoard held in NY back to Frankfurt. 
The repatriation leaves behind a HUGE MESS OF DERIVATIVES as there is approximately 100 paper obligations per one oz of gold repatriated!

We are now engaged in a cyber war with North Korea and an economic war with Russia.  
Our Internet infrastructure is extremely vulnerable, our debt-based economic system is already teetering on the edge of disaster, and government officials freely admit that security at key facilities such as power plants is sorely lacking.  And these kinds of bitter conflicts have a way of escalating.

The North Koreans and the Russians are both very proud, and neither one is going to back down any time soon.  
Without a doubt our Internet infrastructure is very vulnerable.  
The Russian Bear never forgives and it never forgets.   Most Americans don’t realize this, but right now anti-American sentiment in Russia is actually higher than it was at the end of the Cold War era.  Many Russians believe that this is a new Cold War, and that the United States is the greatest force for evil on the entire planet.
So while many Americans view this current conflict as a temporary foreign policy tussle about Ukraine, many Russians view this as a long-term struggle that is absolutely critical to the future of humanity.  
This conflict between the United States and Russia is not going to end any time soon.  And someday down the road, it could evolve into something more than just an economic war.

india silver

With imports in the first ten months totalling a massive 169 Moz many vaults in the UK, traditionally the largest supplier to India, have seen significant drawdowns, leading to more supply flowing from China and Russia. -GFMS

If London was already suffering a drawdown of silver inventories in October from huge Indian demand, how bad is the situation after another 1,254 mt was imported by India in November?  How tight is the wholesale silver market now?
The world has consumed its huge stockpile of above ground silver for the past 3-4 decades, and I believe will soon be faced with a serious problem: where will the market acquire silver stocks to offset annual deficits and increased demand in the future?
Currently, investors are swimming in worthless paper assets up to their eyeballs.
This is very unfortunate as when the time comes to move into physical assets such as gold and silver to protect their wealth, there will be very little to go around… EXCEPT at much HIGHER PRICES.

A number of countries on every continent offer working holiday programs, but countries like Australia, New Zealand, Ireland and Singapore stand out for the high wages and opportunity to work in an English-speaking environment.
Here’s how Jean arrived Down Under and was easily able to save $20,000…

Crude oil and silver prices have crashed before, and they will again. But the one constant in our financial universe that seems inevitable, for the foreseeable future, is increasing debt.
Crude oil and silver prices will follow increasing debt.
Gold and silver are real money, and they are insurance against the craziness and volatility of debt based fiat currency that is increasingly vulnerable to currency crashes like we have seen in Argentina, Venezuela, Ukraine, Russia and elsewhere.
A currency crash may be headed for Japan, Europe, and the United States.
Dollars, euros, and yen have counter-party risk while gold and silver do not.

Make no mistake – there is now a state of open warfare on the streets of America.  Earlier this year it was being reported that the number of police officers killed on the job was up 40 percent in 2014, and that was before all of the civil unrest caused by the deaths of Michael Brown and Eric Garner.
At this point, attacks on police officers are becoming a frequent occurrence all over the country, but no incident has stunned the nation as much as the “execution-style” murder of two NYPD officers on Saturday by a radical Islamic gunman identified as Ismaaiyl Brinsley. 

As economic conditions continue to deteriorate and police tactics become even more brutal in the years ahead, the kind of rioting, looting and senseless violence that we witnessed in Ferguson is going to become commonplace in major cities all over the United States.

bottom of the barrel

In its 2014 Silver Interim Report, GFMS predicted 2014 silver mine supply to reach record levels: 

On the supply side, mine production is forecast to reach all-time highs in the silver industry in 2014 as supply from Guatemala, Mexico, Chile and Peru increases.

As we near the close of 2014, did GFMS massively overestimate 2014 silver supply? 

JP Morgan
Play

The Doc & Eric Dubin discuss this week’s PM raid on thin holiday volume and look forward to whats in store for 2015 in this special Holiday Edition of Metals & Markets discussing: 

  • Eric explains why 2015 will see a supply deficit in silver for the first time in years
  • Given the Titanic Volume turnover in mining shares- the capitulation bottom in gold & silver has ALREADY Occurred! 
  • Ruble stabilizes and recovers as China backstops Russia
  • Oil free-fall continues- what’s in store for 2015? 

The SD Weekly Metals & Markets With The Doc & Eric Dubin is below: 

Putin ammo shortage

What most people refuse to understand, if not even acknowledge, is the extent to which the elites have an utter stranglehold on the world’s financial system, and by world we do not mean just the Western world.  China and Russia are included.  
Not a few hold out the errant belief that the BRICS nations, primarily China and Russia, will replace the elite’s banking system. 
Absolutely not!  The elites are redesigning the next phase of their control over the financial world to include the BRICS, all eager to join the “club” for the first time and be major participants on the financial world stage.
The question is, will Russia make it before the Obama administration, under direct control of the elites, destroys the Russian economy?  Perhaps a better question to ask is, CAN the elites take down Russia?   
Just as the United States, as a physical country was replete with so many natural resources, which have all had their existence sucked out of them, Russia has the most natural resources of the entire world, and the bankers want control over them
There is one big obstacle:  Vladimir Putin.